This article demonstrates a case study in research-creation based on the extended reality (XR) placemaking initiative, and reports on the development of two iterations that are part of a digital technologies (DT) project. Various studies with a focus on restorative and relaxation applications have shown positive findings in improving mental wellness and self-awareness. We speculate that combining physical activity and exposure to digital nature can provide additional health benefits compared to restorative activities alone. The first iteration, Mind Space XR, is a virtual reality (VR) project that has the initial goal of supporting users to experience emotion-focused skills training based on mindfulness, emotion regulation and compassion in a low-risk environment. In this iteration of the DT project, we have focused on interaction design aspects and the research-creation process required to develop the information architecture framework of an early prototype. This ongoing research then informs the development of a second iteration, the ‘inclusive virtual simulation space’ ¿ a VR learning simulation initiative that supports users to experience customizable content in an inclusive environment. Combining Australian Curriculum areas from DT and the humanities and social sciences, this study will experiment with the human¿computer interaction process with the goal of configuring a modular high-fidelity virtual environment to achieve perceived ease of use by user groups including creators, educators and students. This will lead to a proof-of-concept platform with the flexibility to integrate digital content that permits the co-creation of digital prototypes driven by inclusive virtual and physical placemaking and simulation learning. This educational inclusive virtual simulation project focuses on experimenting with and introducing education technology and XR skills and knowledge to educators and creators, which is broadly applicable to education-based DT contexts.