The increasing prevalence of anxiety disorders across the world presents a critical mental health challenge, profoundly affecting overall well-being and elevating risks to both physical and mental health. Virtual Reality (VR) systems, known for creating immersive environments, have gained prominence in technological interventions. This study explores FLOAT, a groundbreaking VR application by Brainswitch Labs Inc., targeting highly anxious young adults. FLOAT's immersive environment, with soothing music and dynamic stimuli, aims to alleviate anxiety while ensuring sustained user engagement. In a randomized controlled trial, FLOAT's efficacy is evaluated alongside a well-established cognitive behavioral therapy distraction technique, recognized for mitigating intense negative emotions. Participants (n = 61) were randomly assigned to intervention (n = 30) and control (n = 31) groups. Anxiety and well-being levels were assessed before and after the intervention. The study demonstrates FLOAT's effectiveness in reducing anxiety during VR sessions, aligning with the distraction strategy's efficacy in the control group. Both groups exhibited improved well-being post-treatment with no significant differences. This research provides valuable insights into VR applications, emphasizing FLOAT's potential for managing anxiety among highly anxious young adults and suggesting broader implications for VR interventions in mental health contexts.