What does fabric softener do to clothes?

… to produce its effect? Physically, chemically…

Believe it adds a little wax, at least the sheets do. Not sure if the same thing is in the liquid.

I don’t have a clue but I think this is a marvelous question, I thank you for asking, and I anxiously await the answer.

CookingwithGas has it right.

The sheets are coated with a light wax that melts off in the heat of the dryer and coats the clothing.

So what gives fabric softener that horrid smell, then?

Fabric softener is something that coats your clean laundry with wax and cheap perfume. Hence the smell. The dryer sheets are also a horrible waste. Use once and toss it.

Try putting a half-cup of vinegar into the machine’s rinse water for the same effect.

another important ingredient is an antistatic agent - the static electricity generated pulls the fibres together I think so it is important to get rid of it

Note: The wax in fabric softener will make towels less absorbant and negate any flame proofing on children’s clothing. It’s best not to use it on these items.

Instead of using (and wasting) fabric softener sheets, mix a 2:1 solution of water and liquid fabric softener in a spray bottle, spray it on a clean wet rag, and toss it into the dryer. If you must.

Does nobody consult Cecil anymore? This answer is 10 years old and is in one of the books.
http://www.straightdope.com/classics/a5_175.html