Amid growing interest in the psychological benefits of tourism, this study explores how red tourism serves as a cultural healing mechanism that fosters individual self-transcendence. Drawing on tourism therapy theory and employing grounded theory methodology, we conducted in-depth interviews with 21 participants who recently engaged in red tourism and experienced personal distress. Through a three-stage psychological transformation: "vexed mind–healed mind–recovered mind", the study uncovers how red tourism facilitates the emotional and cognitive shift from life frustration to personal growth. Findings indicate that red tourism activates a multidimensional awe experience, which includes shock and solemnity, admiration and reverence, as well as reflection and introspection. This experience emerges through the combined influence of three key scene elements: the physical environment, the cultural atmosphere, and social interaction. Awe serves as a core emotional mediator that connects scene stimuli with cognitive restructuring and prosocial behavioral intentions, ultimately leading to self-transcendence. This emotional journey is not a passive reaction but a dynamic process in which individuals reconstruct meaning, reaffirm their values, and develop a renewed sense of purpose in life. The study builds a theoretical model of "Perceived Dilemmas–Scene Activation–Self-Transcendence, " highlighting the mediating role of awe in the transformation from self-centeredness to collective orientation. Practically, the study proposes strategies at macro (target market positioning), meso (scene design), and micro (emotional-behavioral intervention) levels to support red tourism's shift from ideological education to deep emotional healing. These insights offer both theoretical advancement and practical pathways for designing transformative tourism experiences.