In this paper, we construct the equations of generalized thermoelasticity for a non-homogeneous isotropic hollow cylider with a variable modulus of elasticity and thermal conductivity based on the Lord and Shulman theory. The problem has been solved numerically using the finite element method. Numerical results for the displacement, the temperature, the radial stress, and the hoop stress distributions are illustrated graphically. Comparisons are made between the results predicted by the coupled theory and by the theory of generalized thermoelasticity with one relaxation time in the cases of temperature dependent and independent modulus of elasticity.