Dagger2 : How to use @Provides and @Binds in same module

@Binds and @ContributesAndroidInjector methods must be abstract, because they don't have method bodies. That means that they must go on an interface or abstract class. @Provides methods may be static, which means they can go on abstract classes and Java-8-compiled interfaces, but non-static ("instance") @Provides methods don't work on abstract classes. This is explicitly listed in the Dagger FAQ, under the sections "Why can’t @Binds and instance @Provides methods go in the same module?" and "What do I do instead?".

If your @Provides method doesn't use instance state, you can mark it static, and it can go onto an abstract class adjacent to your @Binds methods. If not, consider putting the bindings like @Binds and @ContributesAndroidInjector into a separate class--possibly a static nested class--and including that using the includes attribute on Dagger's @Module annotation.

A little addition to Jeff's solution above:

you may create inner interface instead of static inner class, like this:

@Module(includes = AppModule.BindsModule.class)
public class AppModule {
    // usual non-static @Provides
    @Provides
    @Singleton
    Checkout provideCheckout(Billing billing, Products products) {
        return Checkout.forApplication(billing, products);
    }
    // interface with @Binds
    @Module
    public interface BindsModule {
        @Binds
        ISettings bindSettings(Settings settings);
    }
}

If you are in kotlin world, another alternative is to leverage companion object

@Module
abstract class MyDaggerModule {

    @Binds
    abstract fun provideSomething(somethingImpl: SomethingImpl): Something

    companion object {

        @Provides
        fun provideAnotherThing(): AnotherThing {
            return AnotherThing()
        }
    }
}