D.C. United forward Rooney will line up for England for the final time in their friendly against the USA at Wembley next week when he will win his 120th cap.
It is unclear how much of a part the former Three Lions captain, who is both United's and the national team's all-time leading scorer, will play in the match, with the decision splitting opinion amongst England supporters and former players.
However, Wales manager Giggs, who played with and coached Rooney at United, believes the friendly is an excellent idea for a player who has done a lot for English football.
"I understand it. It's a celebration game against America and I'm all for it," said Giggs.
"In football, and in sport in general, people are not recognised or recognised too late. This is a chance for not only a great player, but an iconic player and top goalscorer.
"He's gone ahead of Gary Lineker and Bobby Charlton, over 50 goals. It gives him a chance to thank the fans for all the support, and the fans to thank him for all the work he's done over the years.
"I've worked with Wayne, played with Wayne, and he doesn't get recognised for what ability he still has and did have at his peak.
"I understand people have got different opinions but, from knowing Wayne and what he's done for England, I don't see any problem with it."
Rooney’s decision to move to the MLS in the summer certainly seems to have paid off, with the striker leading D.C. United to an unlikely play-off finish and netting 12 goals along the way.
Giggs says he is happy for his former team-mate and is not surprised that he is making such a big impact in the MLS.
"It looks like he's enjoying it out there," Giggs said.
"I saw one of the goals he made when he chased back, slide tackled and crossed. That is brilliant to see.
"He'll always score goals because he is a goalscorer. I think he's got 12 goals in 20 games, and it looks as if he's really enjoying life in America.
"He's a footballer who'll want to play for as long as he can, I know that. But whether the body can take it up to 40 we'll have to wait and see."
Gareth Southgate will confirm the rest of his England squad to play in the friendly this coming Thursday, with his side also set to continue their Nations League campaign against Croatia later this month.