This term – "Soul Healing" – can be read in two ways: Either as the healing of a wounded or damaged soul, or the healing the Soul offers the ego. Shamanic practice makes use of both of these meanings.
First – a brief overview of what we mean by "Soul" and how it is viewed from a shamanic perspective. From the perspective of my teachers, each human being has at least three souls while they are alive in the physical body. One of these souls comes to them at birth from their physical ancestors, and ties them to these ancestors throughout their life and even after death. I call this the "Ancestral Soul." There is also a Soul that has lived other lifetimes before this one, and will probably choose to live other lifetimes in the future. I call this the "Reincarnating Soul" or "Infinite Soul." Finally, many shamans would consider the ego, the part of you that thinks of itself as "me" and which is formed by the interaction between your other souls and your physical body, creating an interface with the world we experience around us.
At the death of the physical body, the first two souls tend to move toward the ancestors, into the Under World, while the ego portion will tend to stay near the body until it gradually dissolves. Once in the Under World, the two remaining souls will rest, coming to resolution about their shared lifetime. When this is reached, the Infinite Soul will rise up through the World Tree to the Upper World, where it will make itself available to a new baby being born into the Middle World. Here it will combine with a different Ancestral Soul and gradually form a new ego.
When it comes to healing, these different Soul provide radically diverse opportunities. The Infinite Soul is the one part of the Self that does not change. Communing with this Soul; moving into the awareness of this Soul and resting there, is a profound healing practice that impacts all the other parts that make up our sense of self, including body, mind and energy. In short, this is done by a regular practice of sitting meditation that focuses on resting in Soul Awareness. The Ancestral Soul, on the other hand, is very likely to be carrying distortions from the traumas and wounds of previous generations of the family. These wounds can be healed to a great extent, if the Soul is willing and open to the process. Finally, the ego – if we are to consider this a soul as well – carries its own share of injuries from this current incarnation, much of which can be addressed by a competent therapist. Still, there are things that can be quite helpful in the healing of the ego, which modern therapists tend to shy away from. One example of this is "soul retrieval" which can be a very effective treatment for ego/soul trauma.
This blog post is only a brief overview. Depending on responses, I may go into more detail on this in later posts.