Something you might wash with is soap (7)
I believe the answer is:
flannel
'is soap' is the definition.
(I have seen 'Soft soap ' mean 'flannel' so perhaps 'soap' could also mean 'flannel')
I don't understand how the rest of the clue works.
Can you help me to learn more?
(Other definitions for flannel that I've seen before include "hedge" , "Fabric; bland talk" , "type of fabric" , "Soft-soap" , "Woollen cloth or soft soap" .)