Neats foot oil does wonders for softening and restoring leather, but on a knife sheath it can over soften the leather if you use too much, as you need to keep a bit of rigidity.
Saddle soap, Neatsfoot oil or other animal fats will feed dried out leather and make it supple - light waxes help, boot polish helps (it usually has fats and oils in it), and Dubbin is good too. I make my own dubbin using wax, lard and Neatsfoot....
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