This talk reviews the emission mechanisms of cosmic gamma‐ray bursts. In particular, the thermal synchrotron model is discussed in detail as the most viable mechanism for the majority of the continuum emission. Within this framework various information about the source region can be extracted. The picture that emerges is that of a hot (k T=.2−1.0 mc2), thin sheet of dense pair‐dominated plasma emitting via cyclo‐synchrotron radiation in a strong magnetic field (B‐101 1 to 101 2 gauss). Speculations on the origin and structure of this sheet are attempted. We also briefly discuss the problem of high‐energy photons above pair production threshold escaping from the source.