Simulation of vehicle motion in planetary environments is challenging. This is due to the modeling of complex terrain, optical conditions, and terrain-aware vehicle dynamics. One of the critical issues of typical simulators is that they assume terrain is a rigid body, which limits their ability to render wheel traces and compute the wheel-terrain interactions. This prevents, for example, the use of wheel traces as landmarks for localization, as well as the accurate simulation of motion. In the context of lunar regolith, the surface is not rigid but granular. As such, there are differences in the rover's motion, such as sinkage and slippage, and a clear wheel trace left behind the rover, compared to that on a rigid terrain. This study presents a novel approach to integrating a terramechanics-aware terrain deformation engine to simulate a realistic wheel trace in a digital lunar environment. By leveraging Discrete Element Method simulation results alongside experimental single-wheel test data, we construct a regression model to derive deformation height as a function of contact normal force. The region of interest in a height map is retrieved from the wheel poses. The elevation values of corresponding pixels are subsequently modified using contact normal forces and the regression model. Finally, we apply the determined elevation change to each mesh vertex to render wheel traces during runtime. The deformation engine is integrated into our ongoing development of a lunar simulator based on NVIDIA's Omniverse IsaacSim. We hypothesize that our work will be crucial to testing perception and downstream navigation systems under conditions similar to outdoor or terrestrial fields. A demonstration video is available here: https://www.youtube.com/watch?v=TpzD0h-5hv4