Dementia is associated with cognitive decline and social isolation in people living with dementia (PLwD), and increased caregiver (CG) burden. Non-pharmacological interventions such as reminiscence therapy support emotional well-being by encouraging active recall of meaningful life experiences in individuals. Building upon this approach, this study explores the use of Virtual Reality (VR) Memory and Conversational Artificial Intelligence (AI) to support reminiscence therapy for PLwD and their caregivers. An immersive, customizable VR environments was designed to stimulate memory recall, while an AI Avater supported conversations through various modes to encourage further memory recall, social connection, and engagement.