The nonlinear processes governing the resonant interaction of a packet of lower hybrid waves with a radially bounded electron beam spiraling in a magnetized plasma are investigated. In particular, the paper tries to answer the fundamental following questions: What are the causes of the beam bunching and the main agents of the beam self-organization occurring during the nonlinear wave–particle evolution? What is the influence of the wave packet on the stability of the formed bunches? This paper shows that, owing to the presence of wave energy dissipation out of the bounded beam volume, a competition takes place between the beam relaxation and the particle bunching processes, leading to the structuring of the beam over long distances from the injection point. In particular, two main mechanisms govern the behavior of the particles in resonance with the waves: First, the process of particle bunching which gives rise to dynamically stable and long living bunches of particles which keep resonance and strong correlations with several waves of the packet while continuously decelerated (Cherenkov resonance is considered) in the frame moving with the initial parallel beam velocity and, second, a process of particle diffusion in the velocity space concerning particles which do not experience trapping by waves or which leave a bunch through the action of large stochastic oscillations. This diffusion process cannot be well described in the frame of the weak turbulence theory, as it is noticeably perturbed by the presence of a large number of small unstable bunches which appear, merge together and disappear during the system’s evolution.