In this paper, we study the dynamics of entanglement between three-level atom and optical field, initially prepared in the squeezed coherent state. We discuss the dynamical behavior of the geometric phase and entanglement, measured by the von Neumann entropy, with and without rotating wave approximation during the time of evolution. The effect of the squeezing and detuning parameters on the evolution of entanglement and geometric phase will be examined. We find that the squeezing and detuning parameters play a central role on the evolution of the geometric phase and nonlocal correlation between the field and the three-level atom. Moreover, we show that the dynamics of the system in the presence of rotating wave approximation has a richer structure compared with the absence of rotating wave approximation.