We review the theoretical framework of both line and continuum spectra formation in gamma ray bursts. These include the cyclotron features at 10’s of keV, redshifted annihilation features at ∼400 keV, as well as other potentially detectable nuclear transition lines, atomic x‐ray lines, proton cyclotron lines and plasma oscillation lines. By combining the parameters derived from line and continuum modeling we can try to reconstruct the location, geometry and physical conditions of the burst emission region, thereby constraining and discriminating the astrophysical models. Hence spectroscopy with current and future generations of detectors should provide powerful diagnostic tools for gamma ray bursters.