We attempt to construct a realistic model, incorporating the ideas of supersymmetry, compositeness, and grand unification. Unification dictates the preon/spectator SU(3)×SU(2)×U(1) assignments, while supersymmetry tackles the hierarchy problem and partially protects chiral invariance. It is primarily the presence of scalar preons which allows for a 't Hooft-Appelquist-Carazzone consistent composite generation structure. The various quarks and leptons are internally distinguished, with U(1)R serving as a broken horizontal symmetry. To demonstrate our idea, unified SU(10) is invoked to give birth to supersymmetric SU(5) hypercolor compositeness with four low-lying standard families.