We construct a distinct class of nonlinear displaced Kerr states by application of the displacement operator upon a state which is prepared by sending the well-known photon-added coherent state through a normal Kerr medium. A sketch for the experimental setup for preparing the state is suggested. We evaluate some statistical properties such as the photon number distribution, Mandel's Q parameter, Husimi-Q and Wigner functions, and quadrature squeezing for the nonlinear displaced Kerr state and then analyze the nonclassicality in terms of these standard parameters. We reduce the infinite-level problem to a truncated discrete two-level system by using a low Kerr parameter approximation and then convert the generated nonclassicality into bipartite entanglement between the two modes of an output state of a linear optical device. © 2016 Optical Society of America.