Recent observations of the X-ray spectra of active galactic nuclei are reviewed. After an outline of the properties of these sources deduced from observations at other wavelengths, the relevance of X-ray spectra to our understanding of the X-ray emission mechanisms and of the ultimate source of energy is discussed. The emission and absorption features that are observed arise from the interaction of the X-rays from the active nuclei with the surrounding gas. Observations of these features are reviewed and the information they provide on the nature of the surrounding gas is discussed.