We consider here the spectra produced from the resonant Compton scattering of blackbody and power‐law photons by a beam of relativistic electrons/positrons. The beam is assumed to be directed radially outward along the magnetic axis of a highly magnetized neutron star. We assume a dipole magnetic field geometry, and include the effects of magnetic Compton scattering energy losses on the particles in the beam during transport. A range of surface intensities for a magnetic field of 2×1012Gauss is studied for a power‐law electron/positron source function of index &Ggr;. The calculated scattered photon spectra are similar to observed gamma‐ray burst spectra with a spectral index &agr; which breaks from &agr;&bartil;1 to &Agr;&bartil;&Ggr;.