Hi Ashiwani;
I think they men "personal reality" in this case. I would take this sentence to mean... when we have experiences that are far from our "normal", we try to make them fit into what we consider normal. There is a peanut butter commercial here. A young, poor boy goes to a birthday party at a rich kid's house. He experiences all kinds of things that are unfamiliar to him. When his mother arrives to take him home, all he can talk about is the peanut butter. He has fit the experience into his reality.
I hope this helps,
Stephen