Exploring the interaction of light with time-varying media is an intellectual challenge that, in addition to fundamental aspects, provides a pathway to multiple promising applications. Time modulation constitutes here a fundamental handle to control light on entirely different grounds. That holds particularly for complex systems simultaneously structured in space and time. However, a realistic description of time-varying materials requires considering their material dispersion. The combination thereof has barely been considered but is crucial since dispersion accompanies materials suitable for dynamic modulation. As a canonical scattering problem from which many general insights can be obtained, we develop and apply a self-consistent analytical theory of light scattering by a sphere made from a time-varying material exemplarily assumed to have a Lorentzian dispersion. We discuss the eigensolutions of Maxwell's equations in the bulk and present a dedicated Mie theory. The proposed theory is verified with full-wave simulations. We disclose effects such as energy transfer from the time-modulation subsystem to the electromagnetic field, amplifying carefully structured incident fields. Since many phenomena can be studied on analytical grounds with our formalism, it will be indispensable when exploring electromagnetic phenomena in time-varying and spatially structured finite objects of other geometries.