BETTII is an experimental infrared telescope and interferometer that will be launched via balloon to study star formation and active galactic nuclei. It aims to spatially resolve young stellar objects within dense star clusters using its high angular resolution in the far infrared spectrum. This will provide insight into the earliest stages of star formation and chemical evolution of protostars and their disks. BETTII will also observe active galactic nuclei to separate emissions from the supermassive black hole accretion disk and nearby starburst regions, improving understanding of their co-evolution.