A detailed study of the effects of phase fluctuation and dephasing on the dynamics of the entanglement generated from a coherently pumped correlated emission laser is presented. It is found that the time evolution of the entanglement is significantly reliant on the phase fluctuation and dephasing, particularly, at early stages of the lasing process. In the absence of external driving radiation, the degree of entanglement and intensity turns out to attain a maximum value just before starting to exhibit oscillation which dies at longer time scale. However, in case the driving mechanism is on, the oscillatory nature disappears due to the additional induced coherent superposition and the degree of entanglement would be larger at steady state. Moreover, the degree of entanglement as predicted by the logarithmic negativity and the Duan-Giedke-Cirac-Zoller criteria exhibits a similar nature when there is no driving radiation, although such a trend is eroded with increasing strength of the pumping radiation at longer time scale. The other important aspect of the phase fluctuation and dephasing is the possibility of relaxing the time at which the maximum entanglement is detected.