Classical dynamics simulations are performed to study rotational excitation of H(2) scattered from Pd(111), taking into account energy exchange with surface phonons through a 3D surface oscillator model. We show that dynamic trapping, identified recently in the study of dissociation dynamics, plays a prominent role. The corresponding long interaction time due to several recollisions allows an efficient energy exchange between H(2) molecules and surface phonons. This microscopic mechanism explains the puzzling experimental finding on the role of surface temperature in H(2)(nu = 0,J = 1-->3) excitation.