We revisit the problem of finding the entanglement entropy of a scalar field on a lattice by tracing over its degrees of freedom inside a sphere. It is known that this entropy satisfies the area lawentropy proportional to the area of the sphere -when the field is assumed to be in its ground state. We show that the area law continues to hold when the scalar field degrees of freedom are in generic coherent states and a class of squeezed states. However, when excited states are considered, the entropy scales as a lower power of the area. This suggests that for large horizons, the ground state entropy dominates, whereas entropy due to excited states gives power law corrections. We discuss possible implications of this result to black hole entropy. Although classical black holes (BHs) have infinite entropy and zero temperature, Bekenstein -inspired by the area increase theorem of general relativity -proposed that BHs have entropy proportional to horizon area A H . This, together with Hawking's discovery that BHs radiate with the temperature T H = c 3 /(8πGM ) have given rise to the Bekenstein-Hawking area law for BH entropy:The area (as opposed to volume) proportionality of BH entropy has been an intriguing issue for decades. Attempts to understand this problem can be broadly classified into two classes: (i) those that count fundamental states such as D-Branes and spin-networks, which are supposed to model BHs [3], and (ii) those that study entanglement entropy [4,5] and its variants such as the brick-wall model and Shakarov's induced gravity [6].In the case of entanglement entropy, which is of interest in this work, it is assumed that the von Neumann entropyof quantum fields due to correlations between the exterior and interior of the BH horizon, accounts for black hole entropy. Such correlations imply that the state of field, when restricted outside the horizon, is mixed, although the full state may be pure [4,5]. Although this entropy is ultra-violet divergent, a suitable short distance cut-off [O(ℓ P )] gives S ∝ A H (it was argued in [4] that this entropy must be formally divergent). This idea gained further credence, when it was shown that even for Minkowski space-time (MST), tracing over the degrees of freedom inside a hypothetical sphere (of radius R), gives rise to the entropy of the form 0.3 (R/a) 2 where a is the lattice spacing [4,5] (it was shown in [7] that quantum fluctuations inside the sub-volume scale as its bounding area as well). Thus, the area-law may be a direct consequence of entanglement alone. However, a crucial assumption was made in the analyses of [4] and [5], that all the harmonic oscillators (HOs) -resulting from the descretization of the scalar fieldare in their ground state (GS). Thus the natural question which one would ask is: How sensitive is the area law to the choice of the quantum state of the HOs?In a recent paper, the current authors had investigated this problem for a simpler system of two coupled oscillators, and found two interesting results [8]: (i) the entropy remains unch...