A core process in many quantum tasks is the generation of entanglement. It is being actively studied in a variety of physical settings-from simple bipartite systems to complex multipartite systems. In this work we experimentally study the generation of bipartite entanglement in a nanophotonic system. Entanglement is generated via the quantum interference of two surface plasmon polaritons in a beamsplitter structure, i.e., utilizing the Hong-Ou-Mandel (HOM) effect, and its presence is verified using quantum state tomography. The amount of entanglement is quantified by the concurrence and we find values of up to 0.77 ± 0.04. Verifying entanglement in the output state from HOM interference is a nontrivial task and cannot be inferred from the visibility alone. The techniques we use to verify entanglement could be applied to other types of photonic system and therefore may be useful for the characterization of a range of different nanophotonic quantum devices.