It is demonstrated that the oscillations in the width of the momentum distribution of atoms moving in a phase-modulated standing light field, as a function of the modulation amplitude λ, are correlated with the variation of the chaotic layer width in energy of an underlying effective pendulum. The maximum effect of dynamical localization and the nearly perfect delocalization are associated with the maxima and minima, respectively, of the chaotic layer width. It is also demonstrated that kinetic energy is conserved as an almost adiabatic invariant at the minima of the chaotic layer width, and that the system is accurately described by delta-kicked rotors at sufficiently large zeros of the Bessel functions J 0 (λ) and J 1 (λ). Numerical calculations of kinetic energy and Lyapunov exponents confirm all the theoretical predictions.PACS numbers: 05.45. Mt, 42.50.Vk Nonautonomous Hamiltonian systems exhibit a wide range of novel effects with different manifestations in the quantum and classical domains [1,2]. A situation of especial interest occurs when the classical dynamics undergoes a transition from stability to chaos as a control parameter is varied [3]. In this regard, dynamical localization (DL) is a specifically quantum phenomenon taking place in systems where the classical dynamics exhibits chaotic diffusion in momentum space, while the asymptotic quantum momentum distribution freezes to a steady state although it is initially similar to its classical counterpart. This phenomenon is attributed to quantum interferences among the diffusive paths which on average over long times are completely destructive. These interferences giving rise to chaotic diffusion are properly described in terms of gradual dephasing of the various Floquet states that contribute to the initial state. After a characteristic time (the so-called Ehrenfest time