At the age of two she lost her mother and her education was then handled by the "Hofmeisterin", Else Pellendorfer. Simplicity and frugality were stressed and Kunigunde became very religious. Prudent, strong of will, full of practical intelligence, and robust, she developed into a self-confident personality. Her father, Emperor Friedrich III, had grand plans for her; he wanted her to marry Sultan Mohammed II, the conqueror of Constantinople, if he would become a christian.

However, Albrecht IV, Duke of Bavaria, met the twenty-one-year old Kunigunde in Innsbruck and personal affection and political ambition made him ask her to marry him. Archduke Sigismund and her brother, the future Emperor Maximilian I, supported the marriage. Against the wishes of her father, on 3 January 1487 in Innsbruck they married.
They became the parents of eight children but politically the marriage did not work out. Albrecht had hoped to re-establish the old dukedom of Bavaria as well as gaining the Reichsstadt Regensburg and Tirol for Bavaria. Although the Austrians did not accomodate Albrecht, he supported the visions of Emperor Maximilian and managed the interests of Bavaria from then on only in the frame of the Habsburg Universal monarchy.
In Bavaria Kunigunde and Albrecht supported the new emerging humanism and the renaissance. She was also known for her book collection. The most important accomplishment of Albrecht was the law for "Primogenitur" which ended the division of inheritances and established that the undivided lands would be inherited by the eldest son, even though Kunigunde disagreed. When Albrecht died two years after this law had been proclaimed, Kunigunde stood for family unity
and entered the convent "Zum Puettrich" in Munich and, because of her simple and religious life-style, was regarded as almost holy. She survived her husband by twelve years.

Source: Leo van de Pas