A new set of nonlinear mode coupling equations for finite amplitude low-frequency electromagnetic waves has been derived for nonuniform, resistive, magnetized electron-ion plasma with sheared flows. At equilibrium, the plasma is assumed to have density, ion-temperature, magnetic field, and velocity gradients. The temporal behavior of the nonlinear mode coupling equations is found to be governed by eight coupled equations, which are the generalization of the Lorenz and Stenflo equations, admitting chaotic trajectories. The linear stability of the generalized Lorenz–Stenflo system of equations is also presented under different approximations. The results of the present investigation should be helpful in understanding the wave phenomena in space and tokamak plasmas.