Abstract. The electronic entanglement between two free atoms initially at rest is obtained including the effects of photon recoil, for the case when quantum dispersion can be neglected during the atomic excited-state lifetime. Different from previous treatments using common or statistically independent reservoirs, a continuous transition between these limits is observed, that depends on the inter-atomic distance and degree of localization. The occurrence of entanglement sudden death and birth as predicted here deviates from the case where the interatomic distance is treated classically by a static value. Moreover, the creation of a dark state is predicted, which manifests itself by a stationary entanglement that even may be created from an initially separable state.