The X-ray narrow emission line region (NELR) of the archetypal Seyfert 1 galaxy NGC 5548 has been interpreted as a single-phase photoionized plasma that is absorbed by some of the warm absorber components. This scenario requires those overlaying warm absorber components to have larger distance (to the central engine) than the X-ray NELR, which is not fully consistent with the distance estimates found in the literature. Therefore, we reanalyze the high-resolution spectra obtained in 2013–2014 with the Reflection Grating Spectrometer (RGS) aboard XMM-Newton to provide an alternative interpretation of the X-ray narrow emission features. We find that the X-ray narrow emission features in NGC 5548 can be described by a two-phase photoionized plasma with different ionization parameters (logξ = 1.3 and 0.1) and kinematics (v_out = −50 and −400 km s⁻¹), and no further absorption by the warm absorber components. The X-ray and optical NELR might be the same multi-phase photoionized plasma. Both X-ray and optical NELR have comparable distances, asymmetric line profiles, and the underlying photoionized plasma is turbulent and compact in size. The X-ray NELR is not the counterpart of the UV/X-ray absorber outside the line of sight because their distances and kinematics are not consistent. In addition, X-ray broad emission features that we find in the spectrum can be accounted for by a third photoionized emission component. The RGS spectrum obtained in 2016 is analyzed as well, where the luminosity of most prominent emission lines (the O VII forbidden line and O VIII Lyα line) are the same (at a 1σ confidence level) as in 2013–2014.