We describe a mechanism for guiding the dynamical evolution of ultracold atomic motional degrees of freedom toward multiparticle entangled Dicke-squeezed states, via nonlinear self-organization under external driving. Two examples of many-body models are investigated. In the first model, the external drive is a temporally oscillating magnetic field leading to self-organization by interatomic scattering. In the second model, the drive is a pump laser leading to transverse self-organization by photon-atom scattering in a ring cavity. We numerically demonstrate the generation of multiparticle entangled states of atomic motion and discuss prospective experimental realizations of the models. For the cavity case, the calculations with adiabatically eliminated photonic sidebands show significant momentum entanglement generation can occur even in the “bad cavity” regime. The results highlight the potential for using self-organization of atomic motion in quantum technological applications.