The interplay between nonlinearity and disorder is studied in a discrete on
e-dimensional Schrodinger system. Using a two-point correlation function we
demonstrate that the preferred state of the system comprises narrow intrin
sic localized states corresponding to the intrinsic localized states of the
ordered system. The essence of the interplay between disorder and nonlinea
rity is found to reside in the nucleation process of the localized states.
We emphasize the role of different classes (focusing and defocusing) of non
linearity in enhancing or suppressing localization induced by disorder.