In this paper we introduce the modified time-dependent damped harmonic oscillator. An exact solution of the wave function for both Schrödinger picture and coherent state representation are given. The linear and quadratic invariants are also discussed and the corresponding eigenvalues and eigenfunctions are calculated. The Hamiltonian is transformed to SU(1, 1) Lie algebra and an application to the generalized coherent state is discussed. It has been shown that when the system is under critical damping case the maximum squeezing is observed in the first quadrature F x . However, for the overcritical damping case the maximum squeezing occurs in the second quadrature F y . Also it has been shown that the system for both cases is sensitive to the variation in the coherent state phase.