We propose a new integrable generalization of the Toda lattice wherein the original Flaschka-Manakov variables are coupled to newly introduced dependent variables; the general case wherein the additional dependent variables are vector-valued is considered. This generalization admits a Lax pair based on an extension of the Jacobi operator, an infinite number of conservation laws and, in a special case, a simple Hamiltonian structure. In fact, the second flow of this generalized Toda hierarchy reduces to the usual Toda lattice when the additional dependent variables vanish; the first flow of the hierarchy reduces to a long wave-short wave interaction model, known as the Yajima-Oikawa system, in a suitable continuous limit. This integrable discretization of the Yajima-Oikawa system is essentially different from the discrete Yajima-Oikawa system proposed in arXiv:1509.06996 (also see https://link.aps.org/doi/10.1103/PhysRevE.91.062902) and studied in arXiv:1804.10224. Two integrable discretizations of the nonlinear Schrodinger hierarchy, the Ablowitz-Ladik hierarchy and the Konopelchenko-Chudnovsky hierarchy, are contained in the generalized Toda hierarchy as special cases.