  We discuss three aspects of the interaction between GRB and their
surroundings. The illumination of the progenitor remnant and/or the
surroundings by the X-ray afterglow continuum can produce substantial Fe
K-alpha line and edge emission, with implications for the progenitor model. The
presence of large dust column densities, capable of obscuring the GRB optical
afterglow, will lead to characteristic delayed X-ray and far-IR light curve
signatures. Pair production induced by the initial gamma-rays in the nearby
environment will modify the initial spectrum and the afterglow light curve, and
the magnitude of these changes provides a diagnostic for the external density.
