In this paper, a new generalized semidiscrete integrable system with time-varying coefficients is analytically studied. Firstly, the generalized semidiscrete system is derived from a semidiscrete matrix spectral problem by embedding finite time-varying coefficient functions. Secondly, exact and explicit N-soliton solutions of the semidiscrete system are obtained by using the inverse scattering analysis. Finally, three special cases when N=1,2,3 of the obtained N-soliton solutions are simulated by selecting some appropriate coefficient functions. It is shown that the time-varying coefficient functions affect the spatiotemporal structures and the propagation velocities of the obtained semidiscrete one-soliton solutions, two-soliton solutions, and three-soliton solutions.