Developing speaking proficiency in a second language can be cognitively demanding and emotionally taxing, often triggering fear of making mistakes or being excluded from larger groups. While current learning tools show promise for speaking practice, most focus on dyadic, scripted scenarios, limiting opportunities for dynamic group interactions. To address this gap, we present ConversAR, a Mixed Reality system that leverages Generative AI and XR to support situated and personalized group conversations. It integrates embodied AI agents, scene recognition, and generative 3D props anchored to real-world surroundings. Based on a formative study with experts in language acquisition, we developed and tested this system with a user study with 21 second-language learners. Results indicate that the system enhanced learner engagement, increased willingness to communicate, and offered a safe space for speaking. We discuss the implications for integrating Generative AI and XR into the design of future language learning applications.

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