Moldy odour in towels and clothing is being transferred from the washer. So the first thing we need to do is treat the source of the problem and give the washing a good clean, or else the odour will just return.
Once the odour is cleaned from the washer then you can concentrate on removing mold odor from towels and/or clothing.
Here’s how you can remove the musty smell from your towels:
Step 1: Put your towels in the washing machine using the hottest water available. Add one or two cups of white vinegar. Do not add detergent, fabric softener, or any other products at this time. Run the washer.
Step 2: Leave the towels in the washer and wash the same load again just as you would normally with laundry soap or baking soda. Again, use the hottest water available. Don’t use fabric softener or any other products.
Step 3: Dry the load in the dryer using a high heat setting. Towels should be thoroughly dry when you pull them out. If they’re not dry, put them back in, or move them immediately outside and hang them in the sunlight.