We consider the continuous-wave (cw) propagation through a fiber Bragg grating that is uniformly doped with two-level resonant atoms. Wave propagation is governed by a system of nonlinear coupled-mode Maxwell-Bloch (NLCM-MB) equations. We identify modulational instability (MI) conditions required for the generation of ultrashort pulses in both anomalous and normal dispersion regimes. From a detailed linear stability analysis, we find that the atomic detuning frequency has a strong influence on the MI. That is, the atomic detuning frequency induces nonconventional MI sidebands at the photonic band gap (PBG) edges and near the PBG edges. Especially in the normal dispersion regime, MI occurs without any threshold condition, which is in contrast with that of conventional fiber Bragg gratings. We also perform a numerical analysis to solve the NLCM-MB equations. The numerical results of the prediction of both the optimum modulation wave number and the optimum gain agree well with that of the linear stability analysis. Another main result of the present work is the prediction of the existence of both bright and dark self-induced transparency gap solitons at the PBG edges. © 2010 The American Physical Society.