In this paper we investigate the dynamics of physical properties of the system introduced in Dimer et al. (Phys. Rev. A 75, 013804, 2007) and Zhao et al. (Phys. Rev. A 90, 023622, 2014) consisting of an ensemble of four-level atoms in Bose-Einstein condensate (BEC) state and a single-mode quantized field in which nonlinear interaction is taken into account. In fact, we start with a four-level atom and then explain how this model can be reduced to an effective two-level one via the adiabatic elimination. Also, our presentation is free of any classical approximation and so it is fully quantized. In this regard, we introduce the dynamical Hamiltonian of the system in terms of angular momentum operators and use the Dicke model to achieve the state of atomic sub-system. After obtaining the analytical solution of the state vector associated with the quantized BEC-field system, various physical properties such as atomic population inversion, quantum statistics of the field, squeezing in atomic and field subsystems as well as the degree of entanglement between the “BEC atoms” and the “photons” are numerically evaluated. It is shown that, the nonlinear interaction and other involved parameters in the presented model can dramatically affect the dynamics of the system. The collapse-revival phenomenon in the population inversion, Mandel parameter and atomic squeezing is a superb feature of the system which can be controlled by tuning the chosen parameters. Meanwhile, we propose an efficient way for the generation of sub-Poissonian and squeezed fields as well as squeezed atoms via nonlinear interaction of quantized filed with atomic BEC. In addition, it is found that, after the onset of interaction the system is always entangled. Altogether, under particular conditions, the approximated sudden death and then revival of entanglement can be observed.