The entanglement entropy between quantum fields inside and outside a black hole horizon is a promising candidate for the microscopic origin of black hole entropy. I will explain the motivation behind this interpretation of black hole entropy, and why it requires quantum gravity. I will then apply these ideas to loop quantum gravity and show how to compute the entanglement entropy of spin network states. The result of this calculation agrees asymptotically with results from the isolated horizon framework, and I will give the reason for this agreement. Finally, I will show that the entanglement entropy gives extensive corrections to the area law, suggesting corrections to the gravitational action.