With the diffraction grating spectrometers on Chandra and XMM-Newton, we now have, for the first time, the capability to study the photospheric X-ray spectra of hot neutron stars at high resolution. I will discuss observations of the spectra of X-ray bursts from the neutron star in the LMXB EXO0748-676 with the Reflection Grating Spectrometer on XMM-Newton, in which we have found evidence for gravitationally redshifted photospheric absorption lines due to H- and He-like Fe. I will discuss the interpretation of these data, and the general prospects for future photospheric spectroscopy of neutron stars.