Minimizing and understanding errors is critical for quantum science, both in noisy intermediate scale quantum (NISQ) devices1 and for the quest towards fault-tolerant quantum computation2,3. Rydberg arrays have emerged as a prominent platform in this context4 with impressive system sizes5,6 and proposals suggesting how error-correction thresholds could be significantly improved by detecting leakage errors with single-atom resolution7,8, a form of erasure error conversion9–12. However, two-qubit entanglement fidelities in Rydberg atom arrays13,14 have lagged behind competitors15,16 and this type of erasure conversion is yet to be realized for matter-based qubits in general. Here we demonstrate both erasure conversion and high-fidelity Bell state generation using a Rydberg quantum simulator5,6,17,18. When excising data with erasure errors observed via fast imaging of alkaline-earth atoms19–22, we achieve a Bell state fidelity of ge 0.997{1}_{-13}^{+10}, which improves to ge 0.998{5}_{-12}^{+7} when correcting for remaining state-preparation errors. We further apply erasure conversion in a quantum simulation experiment for quasi-adiabatic preparation of long-range order across a quantum phase transition, and reveal the otherwise hidden impact of these errors on the simulation outcome. Our work demonstrates the capability for Rydberg-based entanglement to reach fidelities in the 0.999 regime, with higher fidelities a question of technical improvements, and shows how erasure conversion can be utilized in NISQ devices. These techniques could be translated directly to quantum-error-correction codes with the addition of long-lived qubits7,22–24.