The proposed system introduces a Virtual Reality-Based Cognitive Behavioral Therapy (VRCBT) tailored for alcohol and tobacco addiction to address the critical need for effective interventions in addiction treatment. As the number of challenges associated with conventional treatment methods increases, there is a pressing demand for newer approaches that can engage and support individuals struggling with addiction. The VRCBT model integrates Cognitive Behavioral Therapy (CBT), within a virtual reality environment. CBT, combines concepts from Computer Science and Psychology, and specifically targets thought processes of individuals who have a positive feeling linked with alcohol and tobacco consumption. The VRCBT offers users access to an AI-driven therapist through a Virtual Reality (VR) interface. The user’s verbal inputs are transcribed into text, enabling the system to predict the individual's levels of anxiety, stress, depression, and emotional state. Utilizing a conversational model, the AI therapist crafts tailored responses, which are subsequently converted back into voice format for users.