It's an ancient ritual used mostly by alphas, since it's a skill that requires quite a bit of practice. One slip, and you could paralyze someone. Or kill them. - Peter Hale
Werewolves can meld their minds with those of others by inserting their claws into the recipients at the base of their skull. It is hinted, but not confirmed that other were-animals can perform this advanced technique.
Mind melding is used exclusively by the most experienced of shapeshifters, or alphas, as it is a dangerous act to perform. If not performed properly, the ritual could kill the recipient, paralyze them, or render them catatonic. If the process, the mental bond was broken by an outsider, it could kill both the user and recipient.
In 1x10 - Co-Captain, Peter Hale shared his memories of the Hale Fire and his coma with his werewolf progeny Scott McCall. Later in 3x02 - Chaos Rising he was able to partially uncover some of Isaac Lahey's memories that had been wiped by the Alpha Pack.
In 3x22 - De-Void, Scott McCall, with Peter's instruction, performed this ritual with his claws in both Stiles and Lydia, and so he and Lydia were able to both enter Stiles' subconscious, with the intention of splitting Stiles from the Nogitsune. In 5x08 - Ouroboros, Scott tapped into Corey's memories in an attempt to find the Dread Doctors' lair.
A technique a werewolf can also learn is a mastery over their physical bodies. This capability allows them to completely blend in with human society in every way.
In Orphaned, Derek outlines this mastery in the sense that werewolves can actually inhibit their own scent so they can avoid detection.
In The Girl Who Knew Too Much, Scott tries to locate Lydia with his internal werewolf vision, yet externally his eyes looked completely normal, supposedly because he'd had the necessary control to mask his vision.