Entanglement dynamics of two non-interacting atoms in a squeezed vacuum reservoir is studied. Several examples with different initial entangled states are investigated, and it is found that entangled atoms become disentangled faster in squeezed vacuum than in ordinary vacuum, and larger squeezing results in faster entanglement decay. The time evolution of the concurrence and the separability "distance" 'Lambda' can be used to explain this novel entanglement sudden death phenomenon.