We demonstrate that nonlinearity plays a constructive role in supporting the robustness of dynamical localization in a model which is discrete, in one dimension and continuous in the orthogonal one. In the linear regime, time-periodic modulation of the gradient strength along the discrete axis leads to the usual rapid spread of an initially confined wave packet. Addition of the cubic nonlinearity makes the dynamics drastically different, inducing robust localization of moving wave packets. Similar nonlinearity-induced effects are also produced by combinations of static and oscillating linear potentials. The predicted nonlinearity-induced dynamical localization can be realized in photonic lattices and Bose-Einstein condensates.