To overcome the lack of deep personalization in standard biofeedback methods, we introduce ASafePlace, a system utilizing an AI-powered, art-therapy-inspired exercise called The Safe Place, to create a personalized VR biofeedback experience. In our system, users sketch a personal sanctuary from memory, which is then transformed into a customized 360° virtual environment with personalized audio guidance for relaxation training. A study with 52 participants showed this approach effectively reduced anxiety and increased user presence, while the integration of art-therapy-inspired activity and biofeedback produced strong improvements in physiological relaxation, measured by heart rate variability and respiration rate. Qualitative results showed how participants’ sense of familiarity and presence was enhanced by the symbolic elements and natural sanctuaries created from their autobiographical memories. Our findings demonstrate that art-therapy-inspired activity is a powerful tool for creating highly effective and individualized relaxation experiences, naturally connecting the virtual environment to a user’s core memories and emotions.