We present a theory for two-particle entanglement production and detection in mesoscopic conductors at finite temperature. The entanglement of the density matrix projected out of the emitted many-body state differs from the entanglement of the reduced density matrix, detectable by current correlation measurements. Under general conditions reduced entanglement constitutes a witness for projected entanglement. Applied to the recent experiment [Neder et al, Nature 448 333 (2007)] on a fermionic Hanbury Brown Twiss two-particle interferometer we find that despite an appreciable entanglement production in the experiment, the detectable entanglement is close to zero. 72.70.+m, 74.40.+k The last decade has witnessed an increasing interest in generation and detection of entanglement in mesoscopic conductors [1,2]. Entanglement is an ubiquitous quantum effect, it describes correlations between particles that can not be accounted for classically. A better understanding of entanglement of elementary charge carriers, or quasiparticles, is therefore of fundamental interest. Due to controllable system properties and coherent transport conditions, mesoscopic conductors constitute ideal systems for the investigation of quasiparticle entanglement. In a longer time perspective, the prospect of quantum information processing using spin or orbital quantum states of individual quasiparticles provides additional motivation for such an investigation.To date quasiparticle entanglement has remained experimentally elusive. However, recently an important step was taken towards a demonstration of entanglement in mesoscopic conductors. Based on the theoretical proposal [3] for a fermionic two-particle interferometer (2PI), see Fig. 1, Neder et al [4] were able to demonstrate interference between two electrons emitted from independent sources. In perfect agreement with theory, the interference pattern was visible in the current correlations but not in the average current. Under conditions of zero dephasing and temperature, the part of the emitted state with one electron in each detection region A,B would bewhere 1, 2 denote the sources. The wavefunction |Ψ s is maximally entangled, it is a singlet in orbital, or pseudo spin, space. However, in the experiment [4] a reduced amplitude (∼ 25%) of the current correlation oscillations was observed, suggesting an important effect of both dephasing and finite temperature. This raises two interesting and interrelated questions: are the electrons reaching the detectors at A and B entangled and if so, can this two-particle entanglement be unambiguously detected by measurements of currents and current correlators? In this work we provide an affirmative answer to both these questions. We present a general theory for twoparticle entanglement generation and detection in mesoscopic conductors at finite temperatures and apply it to the 2PI. Under very general conditions a nonzero entanglement of the reduced orbital density matrix, accessible by current and current correlation measurements [5], is shown ...