We present X-ray imaging , timing , and phase resolved spectroscopy of the anomalous X-ray pulsar 1E 2259+586 using the Chandra X-ray Observatory . The spectrum is well described by a power law plus blackbody model with \Gamma = 3.6 ( 1 ) , kT _ { BB } = 0.412 ( 6 ) keV , and N _ { H } = 0.93 ( 3 ) ~ { } \times~ { } 10 ^ { 22 } ~ { } { cm } ^ { -2 } ; we find no evidence for spectral features ( 0.5 - 7.0 keV ) . We derive a new , precise X-ray position for the source and determine its spin period , P = 6.978977 ( 24 ) s. Time resolved X-ray spectra show no significant variation as a function of pulse phase . We have detected excess emission beyond 4 \arcsec from the central source extending to beyond 100 \arcsec , due to the supernova remnant and possibly dust scattering from the interstellar medium .