The dissipative properties of spatially nonlocal conductors are investigated in the context of quantum friction acting on an atom moving above a macroscopic body. The focus is on an extended version of the hydrodynamic model for the bulk material’s electromagnetic response. It is shown that the standard hydrodynamic description is inadequate for evaluating the frictional force, since it completely neglects Landau damping. The extended version of the model contains a frequency-dependent compressibility factor for the Fermi liquid and qualitatively resolves this issue. For a quantitative assessment, these results are contrasted with those obtained for the more fundamental Boltzmann–Mermin model. Since the latter is technically involved, the simplicity of the extended hydrodynamic model allows for an easier analysis of the impact of nonlocality on quantum friction for other (planar) geometries. This is illustrated with an example involving a thin slab.