Transverse instabilities are shown to accompany counterpropagation of optical beams through reflection gratings in Kerr media. The instability threshold of continuous waves is analytically derived, and it is shown that the presence of the grating broadens and narrows the stability region of plane waves in focusing and defocusing media, respectively. Furthermore, counterpropagating soliton stability is numerically investigated and compared with the transverse modulation instability analysis, revealing an underlying physical link.