We investigate the two-particle spin entanglement in magnetic nanoclusters described by the periodic Anderson model. An entanglement phase diagram is obtained, providing a novel perspective on a central property of magnetic nanoclusters, namely the temperature dependent competition between local Kondo screening and nonlocal Ruderman-Kittel-Kasuya-Yoshida spin ordering. We find that multiparticle entangled states are present for finite magnetic field as well as in the mixed valence regime and away from half filling. Our results emphasize the role of charge fluctuations.PACS numbers: 3.67. Mn, 71.10.Fd, 75.75.+a In the last decade, solid state systems have emerged as a promising stage for quantum information processing, due to the prospect of scalability and integrability with conventional electronics. A successful realization of solid state quantum information processing requires a detailed control of the quantum mechanical properties of the system. In this respect, a key property is entanglement, or quantum mechanical correlations, between the individual quantum bits; entanglement plays the role of basic resource for a large number of quantum information schemes [1]. In nanoscale solid state systems, internal degrees of freedom of individual electrons, like spin or orbital states, are natural candidates for quantum bits. This offers considerable scope for studies of electronic entanglement in nanosystems.For spin entanglement, of particular interest are nanoclusters with magnetic impurities, realized experimentally e.g. by magnetic atoms on a surface [2], on a nanotube [3] or by coupled quantum dots [4]. Such nanoclusters display intriguing spin properties as the Kondo effect and antiferromagnetism, similar to what occurs in extended systems with dense magnetic impurities. For extended systems a central feature, described by the Doniach phase diagram [5], is the competition between formation of local Kondo spin singlets and a nonlocal Ruderman-Kittel-Kasuya-Yoshida (RKKY) spin ordering. A model which captures such behavior is the periodic Anderson model, PAM, a lattice of localized levels (with strong local repulsion) which hybridize with a conduction band. The PAM has been investigated intensively during the last decades [6] in connection with heavy fermion physics, non-fermi liquid behavior, etc [7].To date, no studies are however available for entanglement in the PAM, only the related single [8] and two [9] impurity Anderson models and the simplified Kondo necklace model [10] have been considered. There are also investigations of entanglement in various spin cluster models [11,12]. None of these models do however correctly capture the interplay of spin correlations and charge dynamics, characteristic of the PAM [6]. Only very recently the interest turned to systems where charge dynamics is important [13,14]. These investigations however only concerned the Hubbard model, focusing on entanglement in extended systems, at quantum phase transitions [15]. An investigation of the entanglement in nanoclusters desc...