洋(you)：Ocean (here this means western world)
才(sai)：ability, talent (here this means technology, science)
和魂洋才 means an attitude that while keeping Japanese spiritual tradition, trying to utilize western technology. About 150 years ago, Japanese people realized that western civilization had been advanced. At that time there was a dispute whether Japan can introduce their technology without accepting christian culture. 和魂洋才 was the solution.