  We demonstrate that generalized entanglement [Barnum {\em et al.}, Phys. Rev.
A {\bf 68}, 032308 (2003)] provides a natural and reliable indicator of quantum
chaotic behavior. Since generalized entanglement depends directly on a choice
of preferred observables, exploring how generalized entanglement increases
under dynamical evolution is possible without invoking an auxiliary coupled
system or decomposing the system into arbitrary subsystems. We find that, in
the chaotic regime, the long-time saturation value of generalized entanglement
agrees with random matrix theory predictions. For our system, we provide
physical intuition into generalized entanglement within a single system by
invoking the notion of extent of a state. The latter, in turn, is related to
other signatures of quantum chaos.
